Biggest Mistakes Home Sellers Make

1. Hiring a friend or relative to save on the commission

We see this all the time. Let’s face it, commissions are one of the sellers largest closing costs so trying to save on those seems to make the most sense right? Wrong! Just because your friend or family member has a real estate license, it does not mean that they are a full time professional agent who specializes in listing and selling homes.

Folks, we are hiring someone to sell what might be your largest financial asset you should be focused on finding the right professional with experience and a plan to get you the most money, not the person who’s going to cut you a good deal and “do their best.”

2. Falling into the “I got to get my price” pricing syndrome

“The market determines the price for which you’re going to sell–not what you need to get out of a deal.”

Suppose, for instance, that a couple living in a modest three-bedroom colonial—call them the Wilsons–decided to trade up. One Sunday, the Wilsons happen upon an open house at a new development for four-bedroom homes. They’re taken in with the extra space, skylights, oversized bathrooms and walk-in closets. In their enthusiasm, they sign a contract.

To buy the contemporary, the Wilsons determine, they must sell the colonial for X-amount. Regrettably, the amount they need from the old house is $10,000 more than the prevailing price for similar homes in their neighborhood, and they price the colonial at the “gotta get” level.

But it quickly becomes apparent to buyers that the colonial is priced higher than its competition, and most won’t even bother to visit it. That means that during the first 30 days of the listing–when the home should generate the most excitement–it gets few lookers.

Worse, the home becomes shopworn. As it languishes on the market, people become suspicious that something must be wrong with it.

Sure, the property will probably sell when the Wilsons come to their senses. But the selling price might even be lower than the Wilsons would have received by properly pricing the home at the outset.

3. Trying to “test the market” in terms of price

Like the “gotta get” sellers, people who try a higher-than-market price with the notion that it can always be lowered hurt themselves.

Of course, it’s a free country. You can charge what you want for your castle–ignoring the advice offered by any broker or appraiser you meet, but overpricing will sabotage your sale.

Asking just $5,000 or $10,000 more than market value could mean the difference between selling quickly at a good price and not selling for a while, she says. And remember, keeping your house on the market for a prolonged period imposes its own expenses, including carrying costs and upkeep.

4. Misrepresenting your property

Sellers have a natural inclination to be positive about their property–and that’s perfectly appropriate. We have seen this time and time again we visit the home that’s presented as a 4 bedroom home only to find out its 3 bedrooms with an office or the 4th bedroom is an unpermitted addition. At that point the seller has lost credibility and the interest of the potential buyer.

5. Putting a house up for sale before properly preparing it

Today I was doing a consultation with some clients on this very subject. Making sure that your home is “show ready” before putting it on the market is the best investment that you can make in order to maximize the sale value of your home.

Check out more home sellers tips here: https://yhsgrthesmithteam.com/sellers/